Mit Great

627 Words3 Pages
* Before the redesign project, what factors, processes and behaviors led to the planning problems? Lack of consensus on forecasts that the departments of sales, marketing, finance and operation all had their own forecasts and they did not trust each other’s numbers. The lack of formalized process and communication of forecasting was the key reason underlying. Also, the data most relevant to forecasting was often not accurate or inusable and Leitax had no built-in system to monitor demand planning. Life cycle of certain products was often extended in order to push sales to resellers. Sell-in rather than sell-through was relied upon. The other aspect is the industry aspect that digital camera is a rapidly changing industry that…show more content…
Leitax should tie its demand planning system to its product group, because it constantly introduces new products, so that product group needs to help all these parties involved in demand planning to navigate through the new products on the agenda. This may help different parties to have a better understanding from an inner perspective in addition to marketing and sales perspective. Extending products beyond their lifecycle as Leitax did only serves the purpose of making your numbers look good in the short-term. Ultimately, Leitax did more damage extending the cycles than honoring the lifecycles agreed to in the beginning. Forecasts should be performed with long term results in mind versus purely short term results. The decision to introduce more sophisticated forecasting techniques to aid the demand planning process would not have worked well for Leitax. The introduction of the system Fowler and McMillan introduced was a significant change for the staff of this company, thus trusting the system and improving the system for better accuracy would pay off more than confusing things by adding more sophisticated models. Relying on the most robust model, the statistical model has proven successful in Leitax’s past, but Fowler was concerned the DMS group would seem over bearing. I think DMS had the ability to utilize statistical modeling while also bringing all stakeholders together in a manner that was cooperative versus over
Open Document